coindesk.com
Ether (ETH), the second largest cryptocurrency by market cap could see further gains towards $10,000 this year after reaching a new all-time high around $2,780 on Thursday – a roughly three-fold increase forecasted by FundStrat, a market research firm.
ETH is up about 40% month-to-date versus a 5% decline for bitcoin (BTC). “We’re maintaining our overweight Ethereum vs. bitcoin recommendation from April 2020,” wrote FundStrat in a research note published on Thursday.
- “Ethereum’s market cap has risen to ~30% of bitcoin’s over recent weeks. During the last market cycle, Ethereum broke this level and head as high as 80% of bitcoin’s value.”
- “The crypto narrative is shifting from Bitcoin to Ethereum and other segments like DeFi (decentralized finance) and Web 3.0 apps.”
- FundStrat is bullish on ETH as new financial applications are being developed on the Ethereum network which have grown significantly in scale over the last year.
- “These applications are generating ~3x fees for the Ethereum network vs. Bitcoin which trades at ~3x the market cap.”
- “In crypto accounting terms, this is the same as a company using revenue, less operating costs, and earning profit that is used to buy back stock. This means the network would become profitable like a company once ETH supply reduction from burned fees outpaces inflation,” wrote FundStrat.
- FundStrat also expects bitcoin to reach $100,000 this year and the total cryptocurrency market cap to reach $5 trillion.
